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In 2020 and 2021 Bitcoin went from less than $10k to $60k in a couple of months. Now it did basically the same but in the opposite direction, except that we're
by gst 4y ago
In 2020 and 2021 Bitcoin went from less than $10k to $60k in a couple of months. Now it did basically the same but in the opposite direction, except that we're currently at $18k instead of $10k.
I wouldn't buy at either price, but to me Bitcoin at the current $18k looks like a much more promising investment than a couple of months ago when it was $60k. Not only based on the price, but also based on the fact that a lot of players with risky business models are driven out of the market.
For comparison: If you invested on Jan 1 2020 into an S&P 500 index fund you increased your investment by 18% (based on the total-return index version of S&P 500 which includes dividends). If you invested the same amount in Bitcoin you more than doubled your investment and are still at +150% of your initial investment. I'm not saying that Bitcoin is necessarily a good investment in the future, but based on the large volatility in the past the current decrease in value doesn't really look concerning to me.
- endisneigh 4y agoWhy do people compare spy with bitcoin? You could say GME blows BTC out of the water for instance.
- gst 4y agoBecause a well diversified portfolio is a good comparison/reference for individual investments. A better choice than S&P 500 would probably be the FTSE Global All Cap Index.
- endisneigh 4y agoWhy pick Jan 1 2020 instead of using the YTD? Seems arbitrary to suit your agenda, whatever it is. Might as well use Jan 1 2021
- gst 4y agoAnything after Jan 1 2020 is probably not a good comparison due to the Covid-related market volatility. Anything before could also make sense (personally I have a long term target so I care more about longer time ranges), but would be even more in favor of Bitcoin.
- endisneigh 4y agoSo basically if bitcoin loses it’s not a good comparison, lol.
- stephenboyd 4y agoHow could anyone decide on an appropriate price for Bitcoin when there's no fundamental intrinsic value to it? That lack of a fundamental value helps it increase because nobody can ever say when it's too high, but the inverse, that it's never too low is also true.
- kreetx 4y agoThe fundamental intrinsic value(s) are that BTC can't be printed, second that transactions are unrestricted and borderless, and third that it's network effects, i.e size of user base. How this translates to some price though is an open question though. :)
- danaris 4y agoThose are attributes, not value. Some people may value those attributes, while for others, they are outright drawbacks.
- kreetx 4y agoThere is no intrinsic value in not being inflatable?
- Hani1337 4y agoThere's a first mover advantage that will always price out future investors, so it will keep retracing again and again. If you want something that has better intrinsic value rooted in utility, Cardano's the one. And please, no one reply Ethereum is better than Cardano, when 2/3 of the globe can not afford GPUs. PoW mining is a losing battle.